8 April 2012 0 Comments

Corporatism: The Real World of Corporate Favoritism – Obama’s Favored General Electric Paid 2.3% Tax Rate on $81 Billion of Profits Over Past Ten Years

Oil and gas companies are bashed for their special and not so special tax deductions, meanwhile, one of President “99%” Obama’s favorite corporate has very skilled tax accountants and tax attorneys to maneuver through the incomprehensible labyrinth of the American Tax Code.

GE’s Jeffrey Immelt and President Obama – BFFs

TaxProfBlog (14, 782,742 visits since 2004) presents  Citizens for Tax Justice Press Release  27 February 2012: General Electric’s annual SEC 10-K filing for 2011 (filed February 24, 2012) reveals that the company paid at most 2.3% of its $81.2 billion in U.S. pretax profits in federal income taxes over the last 10 years.

For more on General Electric’s Tax Status see

Bruce Bartlett on Corporate Tax Rate and Tax on Dividends, international comparison and states (NYTimes Economix 20 December 2011):

Those advocating a cut in the corporate tax rate today generally ignore the tax on dividends, as well as many other provisions of United States and foreign tax law that may reduce the effective tax rate well below the statutory rate.

A recent study found that only 25 percent of the largest American corporations pay anywhere close to the statutory corporate tax rate of 35 percent on their earnings, while 40 percent pay less than half that rate.

Indeed, General Electric, the nation’s largest corporation, paid no federal corporate taxes in the United States in 2010, according to a report in The New York Times.”

See also TaxProfblog:  Mitt Romney’s True Tax Rate: 44.75%:  “In other words, after the combined top tax rates hit $100 of corporate income, $55.25 remains for the investor.”

Tax Foundation: U.S. Effective Corporate Tax Rate Is Among Highest in World (TaxProfblog 13 September 2011

 

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